Feds seized nearly $700 million from FTX founder Bankman-Fried

By Dietrich Knauth

(Reuters) – Federal prosecutors seized nearly $700 million in assets from FTX founder Sam Bankman-Fried in January, largely in the form of Robinhood stock, according to a Friday court filing.

Bankman-Fried, who has been accused of stealing billions of dollars from FTX clients to pay debts incurred by his crypto-focused hedge fund, has pleaded not guilty to fraud charges. He is due to stand trial in October.

The Justice Department revealed the seizure of Robinhood stock earlier this month, but it provided a more complete list of seized assets on Friday, including cash held at various banks and assets deposited on crypto exchange Binance.

Ownership of the seized Robinhood shares, valued at approximately $525 million, has been the subject of litigation between Bankman-Fried, FTX and bankrupt crypto lender BlockFi.

The most recent asset seizure reported by the DOJ occurred Thursday, when prosecutors seized $94.5 million in cash from an account at Silvergate Bank, which was affiliated with FTX Digital Markets, the subsidiary of FTX on the Bahamas. The DOJ seized more than $7 million from other Silvergate accounts related to Bankman-Fried and FTX.

The DOJ previously seized nearly $50 million from an FTX Digital Markets account at Moonstone Bank, a small Washington state bank.

DOJ also said assets in three Binance accounts related to Bankman-Fried had been criminally forfeited, but did not provide an estimate of the value in those accounts.

(Reporting by Dietrich Knauth; editing by Noeleen Walder and Daniel Wallis)

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